Finance Minister Arkhom Termpittayapaisith has said he believes Thailand’s economy can grow at a faster rate than forecast for 2023 amid the revival of the nation’s tourism industry, which has been aided by the easing of pandemic-related travel restrictions.
Minister Arkhom said during a recent interview that the monetary tightening measures implemented by the Bank of Thailand (BOT) have been “reasonable” and aligned with the needs of the domestic economy.
The finance minister added that the BOT has not been following the U.S. Federal Reserve’s aggressive pace of tightening, as the economy has been recovering at a slower pace than other Southeast Asian countries. He further stressed the need to ensure full economic recovery, noting that raising rates too quickly could have an adverse impact.
The BOT has raised the key rate by 100 basis points since August 2022, bringing it to 1.50%. However, the tightening cycle has been less aggressive than many regional counterparts. The central bank’s approach has been based on the country’s economic recovery, which has been slower due to the delayed rebound of the tourism sector.
Thailand’s economy was hit hard by the pandemic, which led to a significant decline in tourism and exports. However, strong economic fundamentals, including a stable financial system and a skilled workforce, have provided a foundation for its recovery.
With expected growth in the tourism sector and the reasonable approach of the BOT, Thailand’s economy is expected to continue its recovery in 2023, despite the ongoing uncertainty caused by the pandemic. (NNT)
